Expansion eats into profits for HMV Ireland

Thursday 12 May 2016 - Philip Gallagher

Heavy investment led to pre-tax losses for the Irish arm of HMV, despite a growth in revenue.

The 12 months to the end of January 2015 saw the chain open stores in Dublin and Galway. Investing over €600,000, the business also increased its marketing spend and renegotiated terms with its suppliers.

Revenue more than doubled as a result, from €9.67m to €19.66m, though this led to short term losses. HMV’s operating profit declined by 75% from €1.03m to €254,000

Regardless, HMV’s director’s report claimed these figures were in line with yearly targets, emphasising that the firm achieved “significant market share growth in both its core and music markets”.